The directors of the Federal Reserve Bank of Cleveland and the Federal Reserve Bank of Richmond wanted a 25-basis-point discount rate hike to 1.5%, while the other 10 Fed banks preferred to leave the rate at 1.25%, according to minutes of the discount rate meeting, released by the Fed Tuesday.
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The economy and labor market continued improving, and directors expect continued moderate economic growth, while inflation was increasing was had yet to reach the Fed's 2% target.
"Many directors pointed to an elevated level of uncertainty about potential fiscal and other government policies and their likely effect on the economy," the minutes noted.
